Saturday, 23 July 2016

WHY?? Early Bird regurgitates on Envestors


Earlybird is a snack best eaten cold. 

The company is like a bad lunch  - it keeps on repeating on you. 

They managed to raise twice on Crowdcube, the second time at a value of £1.5m only a few months ago. This raise was farcical, having had to change the end date several times and increase the equity to squirm over the line. Now they are back on Envestors with an increased valuation! They are apparently worth £2m. They have been on Crowdcube, Angels Den and now Envestors - see here . Where to next govner?

The revenues on Crowdcube were due to go from £11,000 to over £1m in 12 months. Need we say more. 

As they have changed all their dates, from the Crowdcube raise to now, its almost impossible to tell if their projections are realistic. Our bet is that they are worse than most, which means they are not great - CAVEAT IPSUM EMPTOR. 

We love the line in the pitch (again sent to us anon) about the Exit strategy. 'Exit is most likely via a trade sale'. In our opinion the exit is most likely out the back door. 

7 comments:

  1. This company has no sense of direction and at least CC came to their senses and told them to bugga of! So you mean to tell me you raised a total of 500k 5months ago and your not even in profit?! Envestors also need to do severe due diligence on this company:

    - founder - 'serial entrepenuer' really?? (companies house doesn't signify this)
    - a line in their pitch 'Lilly abrahamson worked at innocent for 7 years and with ealrybird' - yet when you actually look into her linked in not a sight of earlybird and she worked at innocent for 2 years!

    the company is clearly in turmoil and they just want to raise these funds to fund their losses. As peter jones would say in Dragons Den 'you are not using my money to fund your losses! your out of your mind'

    great work as usual Rob!

    ReplyDelete
  2. Hello Rob, I'd be interest on your views on Envestor as a business. Thanks.

    ReplyDelete
  3. They emailed investors yesterday with a letter basically saying that they were going to run out of money: that the envesters raise wouldn't come through until Sept/Oct (which they seem to attribute to Brexit) - and asking existing investors to urecently re-invest at a valuation of £1.1m. Sorry... writing this one off :) !

    Big fan of this blog Rob - very informative. Completely unrelated, do you have any intelligence on "Fruitful Finance Ltd" (formerly crowd mortgage on crowdcube) So far as I can tell it employs people ... but hasn't traded in the 3 years since they were funded and equity / structure changes have looked suspicious as a minor investor receiving no formal updates.

    ReplyDelete
    Replies
    1. Could you please email me the email they sent out. This would seem to be highly irregular and should certainly be brought to the attention of the FCA and Envestors, but we need to see the email.

      Delete
  4. They emailed investors yesterday with a letter basically saying that they were going to run out of money: that the envesters raise wouldn't come through until Sept/Oct (which they seem to attribute to Brexit) - and asking existing investors to urecently re-invest at a valuation of £1.1m. Sorry... writing this one off :) !

    Big fan of this blog Rob - very informative. Completely unrelated, do you have any intelligence on "Fruitful Finance Ltd" (formerly crowd mortgage on crowdcube) So far as I can tell it employs people ... but hasn't traded in the 3 years since they were funded and equity / structure changes have looked suspicious as a minor investor receiving no formal updates.

    ReplyDelete
  5. They emailed investors yesterday with a letter basically saying that they were going to run out of money: that the envesters raise wouldn't come through until Sept/Oct (which they seem to attribute to Brexit) - and asking existing investors to urecently re-invest at a valuation of £1.1m. Sorry... writing this one off :) !

    Big fan of this blog Rob - very informative. Completely unrelated, do you have any intelligence on "Fruitful Finance Ltd" (formerly crowd mortgage on crowdcube) So far as I can tell it employs people ... but hasn't traded in the 3 years since they were funded and equity / structure changes have looked suspicious as a minor investor receiving no formal updates.

    ReplyDelete